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6 Solid Benefits Of Adopting Six Sigma In Your Company

Six Sigma is one of the most abundant tools used in businesses these days. This methodology does serve a huge base of customers. It is used as a method of quality and productivity. It not only improves productivity but also optimizes costs.

Six Sigma experts like Mr Peter Peterka, the CEO of US-based company Global Six Sigma, says, “…defining the problem is a critical first step when seeking improvement on an internal business problem. …Once these areas are defined, you are ready to go to the next step in fixing your problem!” So once the underlying problems are clearly outlined, Six Sigma principles can be employed to effectively resolve them and derive multifarious benefits in all aspects of the company.


In this article, we will discuss some of the most significant benefits of adopting Six Sigma methodology.

1. Operational cost reduction

For most of the global companies, operational risks and costs are one of the most significant factors. They play one of the most evident roles in profits and losses of the company. Six sigma provides a roadmap that would reduce the exposure of risk factors for an organization. This makes the business more efficient in delivering their products and services. It not only reduces the LEAD time of task but also improves the quality of the work done. It also contributes to cost reduction by looking into the productivity and quality of products and services of the company. The tool reduces different types of costs like inspection cost, rework cost and improves the experience of customers.


2. Improvement in efficiency and timeliness

It improves the timeliness of delivering a project and makes sure that the work is delivered within the stipulated time. The definition of process pain changes from one company to another. The six sigma tool would target the required area and would ultimately help in doing it all within the assigned time frame.


3. Improve Controls, Accuracy and Policy Compliance

The six sigma projects help in improving the control, accuracy and policy compliance. It improves the accuracy of work by improving reducing DPMO across the value stream in the process. DPMO is a probabilistic measure of error rate. This helps in measuring the probable defects in each of the opportunities. With the help and collaboration of different statistical tools and six sigma, the stability of a project can be monitored and tracked. It also helps in maintaining compliance by assessing the deviation and reducing it as less as possible.


4. Enhance customer service

The image of the company mainly depends on its interactions with its customers. Companies that want to flourish their image would keep this relationship as stable as possible. The six sigma tool can detect variations that customers experience and based on that companies can make required changes that would improve things for the better.


5. Cash flow improvement

Six Sigma projects can be used for improving Days Sales Outstanding in the business and cash flows. The higher the DSO, the lesser would be the ability of the company to convert credit sales to cash. Six Sigma helps in reducing variations in invoice processing, etc.


Multiple measurable critical defects can be identified across the process to improve the cash flow.

6. Regulatory Compliance Improvement

There are basically 3 aspects of regulatory compliances namely Finance & Audit, IT and Legal. Depending on the kind of defects identified, six sigma projects can easily be undertaken. Coming to Finance & Audit, it aims at improving the process of fund allocation. For IT, it aims not only at reducing risks of non-compliance but also improves the quality of services at the IT desk as a whole. Coming to the Legal front, it aims towards improving auditory compliances.



Six sigma is a journey where along the way, a company experiences excellence and transformation. Once the organization has completed multiple rounds of projects in different critical as well as non-critical function, the newly developed organization would start to emerge. It would also shift the blame away from the poor process designing. Six Sigma helps the management to develop. It not only empowers the employees but also drives brand new development ideas.

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